It is so easy for the state to track purchases,that it makes it easy for them to identify stores that report less sales than they do purchases. It is a dead giveaway if the sales and purchases do not come close to matching. Many of the small businesses keep a double set of books or run two registers to under report true taxable sales. They under report actual sales and the State is deprived of the revenue. You can be prosecuted for filing false reports. It is a felony and you face time in prison. If you are not a United States Citizen and get convicted of a felony involving moral turpitude you can face deportation or be denied admission back into the United States if you return to your country for a visit.If you get a visit, a call or a letter from the Department of Revenue, and you think you may have a problem, you need to get immediate advice from an experienced criminal lawyer who has experience handling sales tax cases.